Unusual Dual Boot problem

I have two SCSI hard drives, one with Win 2k and a couple of other FAT32 partitions (Disk 0), the other with Win XP (Disk 1) in NTFS. They work well in a dual booot arrangement.

I decided to combine the two disks, and use the free one for backup. I created a new NTFS partition on Disk 1 immediately adjacent to the existing C: drive Win 2k partition, and cloned the XP from Disk 1 into this new partition.

The system ran well.

I then formated Disk 1 to make space for backups. Win XP would not start up. It got past the startup screen with the blue moving line in the centre, but does not proceed past the next screen, which looks very much like the XP screen you get when closing down.

Using Ghost 2003, I then cloned the XP from the new partiton on Disk 0 back on to Disk 1 and all worked well again.

Can anyone please advise what might be going wrong? My boot.ini file in the Win2k partiton on Disk 0 is: